Incorporate Blog

A new law in Delaware allows companies that blend profit-seeking and enhancing societal-good to register as “Public Benefit Corporations” (aka “PBCs”). To date, 53 PBC’s have been formed making Delaware the fastest growing jurisdiction in the nation among the 20 states that have enacted similar legislation.

The current corporate law paradigm requires directors to focus their attention on stockholders and maximize value for them. New Delaware “public benefit” corporations change that paradigm by giving directors the ability to pursue broader goals, serving non-stockholder interests and promoting such interests even if it comes at some economic cost to stockholders.